Abstract
This thesis examines the effect of risk attitude, confidence and optimism behavioral biases on investment decisions and portfolio returns. The thesis methodology utilizes an experimental approach, whereby students compete through a semester long stock market simulation using the Stock-Trak simulation platform. Behavioral biases are examined through a behavioral biases diagnostic assessment completed by students during the trading period. Findings of this study show that both confidence and optimism biases have statistically significant impact on investors’ decisions and consequently affect investors’ portfolio returns. Findings also show that high confidence levels have positive impact on portfolio returns, on the other side, portfolio optimism bias, has a negative impact on portfolio returns. Data also suggests that males who are found to be more optimistic tend to lose more than less optimistic males in the sample. Another finding in this study shows that gender is the only highly statistically significant variable that predicts and explains investors risk attitude.
Department
Management Department
Degree Name
MS in Finance
Graduation Date
6-1-2017
Submission Date
May 2017
First Advisor
Bassiouny, Aliaa
Committee Member 1
Ahmed, Neveen
Committee Member 2
Abdel Razek, Yasmine
Extent
48 p.
Document Type
Master's Thesis
Rights
The author retains all rights with regard to copyright. The author certifies that written permission from the owner(s) of third-party copyrighted matter included in the thesis, dissertation, paper, or record of study has been obtained. The author further certifies that IRB approval has been obtained for this thesis, or that IRB approval is not necessary for this thesis. Insofar as this thesis, dissertation, paper, or record of study is an educational record as defined in the Family Educational Rights and Privacy Act (FERPA) (20 USC 1232g), the author has granted consent to disclosure of it to anyone who requests a copy.
Institutional Review Board (IRB) Approval
Approval has been obtained for this item
Recommended Citation
APA Citation
El Kashef, N.
(2017).The effect of behavioral biases and gender differences on portfolio returns & investment decisions: An experimental approach [Master's Thesis, the American University in Cairo]. AUC Knowledge Fountain.
https://fount.aucegypt.edu/etds/612
MLA Citation
El Kashef, Noran Naiem. The effect of behavioral biases and gender differences on portfolio returns & investment decisions: An experimental approach. 2017. American University in Cairo, Master's Thesis. AUC Knowledge Fountain.
https://fount.aucegypt.edu/etds/612